Nebraska Student Loan Company Sues Former Employee

December 7, 2011

Lincoln-based student loan company Nelnet has filed a lawsuit against a former employee over his failed whistle-blower.

The Lincoln Journal Star reports that Nelnet filed its lawsuit on Nov. 29 in Lancaster County District Court against Rudy Vigil. Vigil sued Nelnet in 2005 after being fired, and the matter was settled that year. Nelnet’s lawsuit says that as part of the settlement, Vigil agreed to release Nelnet from any claims and damages of any kind.

But in 2007, Vigil filed a federal lawsuit as a whistle-blower, accusing the company of improperly collecting federal subsidies after violating federal lending rules. The lawsuit was dismissed last year and upheld on appeal.

Nelnet is now suing Vigil, looking to recoup costs incurred to defend itself against the whistle-blower suit.

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